Agenda, decisions and minutes

There were no apologies.

There were no declarations of interest.

These will be taken at Cabinet on 11 September 2018.  

The minutes of the last meeting would be considered by Cabinet on 11 September 2018.

There were none.

The Cabinet Member Development and Safety reported the following :

Contract waiver – Specialist property advice

In line with Section 6 of the contract rules in the Council’s Constitution, a decision had been taken by the budget holder, the Managing Director of Place and Growth in consultation with the s151 officer and the Council’s Solicitor regarding a contract waiver for a contract that was less than £100K (Rule 6.2.1).

The contract related to the appointment of a specialist agent, Savills, to advise and act on behalf of the Council regarding the West Cheltenham program. The matter was urgent in order to meet the critical timelines for the project and is commercially sensitive and a waiver report has been completed.

Contract waiver –  CBH  

In line with Section 6.2.1 of the contract rules in the Council’s Constitution, an urgent decision had been taken by the Head of Paid Service in consultation with the Leader regarding a contract waiver for a contract that exceeded £100K.

The contract related to the renewal of old communal wiring and the installation of emergency lighting within 66 communal stairwells within general needs blocks of flats managed by CBH.  The contract was awarded to Vision Accendo Limited but on 27^th March 2018 the company entered administration having only completed part of the work.  The recommendation from the Asset and Investment Manager, CBH was that a waiver be issued to permit the novation of the contract with Vision Accendo Limited to NKS Contracts (Central) Limited to ensure the work was completed in required  timescales. This was an urgent decision which could not wait until a Cabinet meeting could be called. A waiver report was completed.

The Cabinet is recommended to approve the following resolution:-

“That in accordance with Section 100A(4) Local Government Act 1972 the public be excluded from the meeting for the remaining agenda items as it is likely that, in view of the nature of the business to be transacted or the nature of the proceedings, if members of the public are present there will be disclosed to them exempt information as defined in paragraph 3, Part (1) Schedule (12A) Local Government Act 1972, namely:

Paragraph 3; Information relating to the financial or business affairs of any particular

person (including the authority holding that information)

RESOLVED THAT

“In accordance with Section 100A(4) Local Government Act 1972 the public be excluded from the meeting for the remaining agenda items as it is likely that, in view of the nature of the business to be transacted or the nature of the proceedings, if members of the public are present there will be disclosed to them exempt information as defined in paragraph 3, Part (1) Schedule (12A) Local Government Act 1972, namely:

Paragraph 3; Information relating to the financial or business affairs of any particular

person (including the authority holding that information)

Report of the Cabinet Member Finance

The Cabinet Member Finance introduced the report and explained that the original basis of the commercial strategy was to establish a £10 million fund mainly financed through borrowing to purchase investment properties with the aim of generating a net yield in excess of 5%. However, this acquisition fell outside the parameters previously set by Council and would require a further budget allocation to fund the acquisition and associated costs.

She emphasised the key role in facilitating the long term regeneration and economic growth of their local areas. Cheltenham was uniquely placed to grow and sustaining and growing the town’s economic and cultural vitality was one of the key outcomes as set out in the Cheltenham Vision and Corporate Strategy. The property investment strategy aimed to support this by focussing on acquisition opportunities within or in close proximity to the Borough which would help secure existing or increased business rates income.

Finally, the Cabinet Member Finance explained that the purchase of commercial property acquisitions was recommended to provide additional income for the Council, fulfil the intentions as set out in the Investment Property Portfolio report previously agreed by Council and work towards meeting the challenges identified in the Medium Term Financial Strategy. She highlighted that in adhering to the revised guidance, the acquisition of commercial property was focused to ensure that the asset made a contribution towards service delivery and/or place-making, for example economic benefit, business rates growth/retention, or responding to market failure.

She wished to put on record her thanks to the Executive Director Finance and Assets and the Property team, in particular Simon Hodges as well as the finance team. The ultimate decision would be made by Council on 11 September.

RESOLVED THAT

The recommendations as outlined in the report be approved.